Labor Relations

Ateneo de Davao University

Based on the Book of Azucena and the lectures of Fr. Nazareno

Creation and Composition (NLRC)

Labor Relations (Art. 218) It is essentially inter-party, which means theemployer and employees themselves must dealwith their problems in a manner mutually suitsthem best The government labor relations policy encouragesdemocratic and self-devised method of labormanagement relationsGeneral Rule: Free agreement between the partiesException: Government intervention Thepolicyprefersvoluntaryinsteadofcompulsory modes of dispute settlement The government steps in only when the partiesthemselves foil to reach an agreement to theprejudice of public interest or one disregards thedefined rights of the othero i.e. the employer busts the union orcommits other form of unfair labor practice(ULP); oro when the union blockades the companygateWorkers Participation SC ruled that employees or their union should beallowed to participate in the formulation of thecode of discipline which the employees will betold to observe In the PAL case, the NLRC directed the companyto share with the union the prerogative toformulate a Code of Discipline. The SC upheldthe unions objection to the implementation of thecode which the management had revised withoutthe unions participation.Labor Education Enlightenment of workers concerning their rightsand obligations is a State policy. Conduct of labor education is an obligation oflabor organizations under Art. 249Definitions (Article 219)Commission the National Relation CommissionBureau Bureau of Labor Relations and/or the LaborRelations Division in the regional offices establishedunder PD No. 1 in the Department of LaborShelumiel Ryan B. Abapo, CPA3-ManresaAdDU College of Law

Board the National Conciliation and Mediation Board

(NCMB) established under EO No. 126Council the tripartite Voluntary Artbitration AdvisoryCouncil established under EO No. 126 as amendedEmployer any person acting in the interest of anemployer, directly or indirectly. The term shall NOTinclude any labor organization or any of its officers oragents except when acting as employerEmployee Includes any person in the employ of theemployer. It shall include any individual whose work hasceased as a result or in connection with any currentlabor dispute or because of any ULP if he has notobtained any other substantially equivalent and regularemploymentLabor Organization any union or association ofemployees which exists in whole or in part for thepurpose of collective bargaining or of dealing withemployers concerning terms and conditions ofemploymentLegitimate Labor Organization means any labororganization duly registered with the DOLE and includesany branch or local thereofCompany Union any labor organization whoseformation, function, or administration has been assistedby any act defined as ULP by this CodeBargaining representative a legitimate labororganization of any officer or agent of such organizationwhether or not employed by the employerUnfair Labor Practice means any unfair laborpractice as expressly defined by the Labor CodeLabor Dispute includes any controversy or matterconcerning terms and conditions of employment or theassociation or representation of persons in negotiating,fixing, maintaining, changing or arranging the termsand conditions or employment, regardless of whetherthe disputants stand in the proximate relation ofemployer and employeeManagerial Employee is one vested with powers orprerogatives to lay down and execute managementpolicies and/or hire, transfer, suspend, lay off, recall,discharge, assign or discipline employees. Supervisory Employees are those who, in theinterest of employer, effectively recommend suchmanagerial actions if the exercise of suchauthority is not merely routinary or clerical innature but requires the use of independentjudgment Rank and File Employees all employees not1

Labor RelationsAteneo de Davao UniversityBased on the Book of Azucena and the lectures of Fr. Nazareno

falling within any of the above definitions

Voluntary Arbitrator any person accredited by theBoard (NCMB) as such, or any person named ordesignated in the Collective Bargaining Agreement(CBA) by the parties to act as their Voluntary Arbitratoror one chosen, with or without the assistance of theNCMB, pursuant to a selection procedure agreed uponin the CBA, or any official that may be authorized by theSecretary of DOLE to act as Voluntary Arbitrator uponthe written request and agreement of the parties to alabor disputeStrike any temporary stoppage of work by theconcerted action of employees as a result of anindustrial or labor disputeLockout means the temporary refusal of an employerto furnish work as a result of an industrial or labordisputeInternal Union Dispute includes all disputes orgrievancesarisingfrom any violationofordisagreement over any provision of the constitution andby-laws of a union, including any violation of the rightsand conditions of union membership provided for in thisCodeStrike-breaker means any person who obstructs,impedes, or interferes with by force, violence, coercion,threats or intimidation any peaceful picketing byemployees during any labor controversy affectingwages, hours, or conditions of work or in the exercise ofthe right of self-organization or collective bargainingStrike area the establishment, warehouses, depots,plants or offices, including the sites or premises used asrunaway shops, of the employer struck against, as wellas the immediate vicinity actually used by picketingstrikers in moving to and fro before all points ofentrance to and exit from said establishmentNational Labor Relations Commission (Art. 220) Attached to the Department of Labor andEmployment (DOLE) for program and policycoordination only Composed of a Chairman and 23 memberso 8 members each shall be chosen among thenominees of the workers and employersorganizationso The Chairman and the remaining 7remaining members shall come from thepublic sector, the latter to be chosenpreferably from among the incumbent laborShelumiel Ryan B. Abapo, CPA3-ManresaAdDU College of Law

arbiters Upon assumption into office, the membersnominated by the workers and employersorganizations shall divest themselves of anyaffiliation with or interest in the federation orassociation to which they belong It may sit en banc or in 8 divisions eachcomposed of 3 memberso Shall sit en banc only for purposes of1. promulgating rules and regulationsgoverning the hearing and dispositionof cases before any of its divisionsand regional branches2. formulating policies affecting itsadministration and operations3. to allow cases within the jurisdictionof any division to be heard and decideby another division; and4. to recommend the appointment of alabor arbiter Shall exercise its adjudicatory and all otherpowers, functions, and duties through itsdivisions Of the 8 divisions, the 1st-6th divisions shallhandle cases coming from the NCR andother parts of Luzon 7th and 8th divisions on cases from Visayasand Mindanao The divisions of the Commission shall haveexclusive appellate jurisdiction over caseswithin their respective territorial jurisdiction The concurrence of 2 commissioners of adivision shall be necessary for thepronouncement of a judgment or resolution When the required membership in a divisionis not complete and the concurrence of 2commissioners cannot be obtained, theChairmanshalldesignateadditionalCommissioners from other divisions as maybe necessary TheChairmanshallbethePresidingstCommissioner of the 1 Division and the 7 othermembers from the public sector shall be thePresiding Commissioners of the 2nd to 8th divisionso In case of the absence or incapacity of theChairman, the Presiding Commissioner ofthe 2nd division shall be Acting Chairman2

Labor RelationsAteneo de Davao UniversityBased on the Book of Azucena and the lectures of Fr. Nazareno

o The Chairman, aided by the Executive Clerk

of the Commission, shall have exclusiveadministrativesupervisionovertheCommission and its regional branches andall its personnel, including the LaborArbiters The Commission and its 8 divisions shall beassisted by the Commission Attorneys (CA) in itsappellate and adjudicatory functions whose termsshall be coterminous with the Commissioners withwhom they are assignedo The Commission Attorneys shall bemembers of the Philippine Bar with at least1 year experience or exposure in the field oflabor-management relationso Receive annual salaries and be entitled forallowances and benefits falling under SalaryGrade 26o There shall be as many CAs as may benecessary to the effective and efficientoperation of the Commission but in no casemore than 3 be assigned to the Office of theChairman and each Commissionero No Labor Arbiter shall be assigned toperform the functions of the CA nor detailedto the office of any CommissionerHeadquaters, Branches, and Provincial ExtentionUnits (Article 221) The Commission and its 1st to 6th divisions shallhave their main offices in Metro Manila The 7th and 8th divisions in Cebu City and Cagayande Oro, respectively Shall establish as many regional branches asthere are regional offices of the DOLE, subregional branches or provincial extension units There shall be as many labor arbiters as may benecessary for the effective and efficient operationof the CommissionAppointment and Qualifications (Article 222) The Chairman and other Commissioners shallbe members of the Philippine Bar ando must have been engaged in the practice oflaw in the Philippines for at least 15 yearswith at least 5 years experience orexposure in the field of labor-managementShelumiel Ryan B. Abapo, CPA3-ManresaAdDU College of Law

relations; ando preferably be residents of the region wherethey shall hold office The Labor Arbiters shall be members of thePhilippine Bar ando Must have been engaged in the practice oflaw in the Philippines for at least 10 years,with at least 5 years experience orexposure in the field of labor-managementrelations The Chairman and other Commissioners and theLabor Arbiters shall hold office during goodbehavior until they reach the age of 65 unlesssooner removed for cause provided by law, orincapacitated to discharge the duties of theirofficeo The President of the RP may extend theservices of the Commissioners and LaborArbiters up to the maximum age of 70years upon the recommendation of theCommission TheChairman,theDivisionPresidingCommissioners, and other Commissioners shallbe appointed by the Presidento Appointment to any vacancy in a specificdivision shall come only from nominees ofthesectorwhichnominatedthepredecessoro The Labor Arbiter shall be appointed by thePresident upon recommendation of theCommission en banc to a specificarbitration branch preferably in the regionwhere they are residents, subject to CivilService Law, rules and regulationso The Labor Arbiters who are presentlyholding office in the region where they areresidents shall be deemed appointedthereatSalaries, Benefits, and Emoluments (Article 223) The Chairman and members of the Commissionshall have the same rank, receive annual salaryequivalent to, and be entitled to the sameallowances, retirement and benefits as those ofthe Presiding Justice and Associate Justices of theCA Labor Arbiters shall have the same rank, receive3

Labor RelationsAteneo de Davao UniversityBased on the Book of Azucena and the lectures of Fr. Nazareno

an annual salary equivalent to an entitled to the

same allowances, retirement, and other benefitsand privileges as those of the Judges of the RTCOverview of the NLRC The NLRC is the principal government agency thathears and decides labor-management disputes The countrys labor court It is independent from DOLE Attached to the DOLE only for purposes ofpolicy coordination It functions as a court, but the law wants theNLRC to be more expeditious and less tied totechnical rules than regular courts Has regional arbitration branches or RABs Labor Arbiters are the NLRC representatives in thecountrys various regions They arbitrate and decide disputes betweenparties Decisions may be brought up or appealedto the NLRC Division comprising thearbiters regionOriginal Jurisdiction of NLRC Petition for injunction Certified cases or those national interest labordisputes certified or referred to the NLRC forcompulsory arbitration under Art. 227o The certification of the case to the NLRCstops the conduct of a strike or lockouteven if there is objection to the certificationorder of the DOLE Secretaryo The certification order is issued to protectthepeoplesinterest,compelsthecontinuation of business operationo Non-compliance is an illegal actChapter II Power and DutiesJurisdiction of Labor Arbiters and the Commission(Article 224)Compulsory Arbitration the process of settlementof labor disputes by a government agency that has theauthority to investigate and make an award which isbinding on all the parties Labor Arbiter is clothed with the original andShelumiel Ryan B. Abapo, CPA3-ManresaAdDU College of Law

exclusive authority to conduct compulsory

arbitration When the LA rendered his decision, the case isconsidered finally resolved by arbitration The NLRC, through its Divisions, conductscompulsory arbitration only in national interestcases certified or referred to it by the DOLESecretaryCasesundertheOriginalandExclusiveJurisdiction of Labor Arbiters (Article 224, 1-6)(Additional, 7-10)1. Unfair labor practices (ULP) cases2. Termination disputes3. Cases filed accompanied with a claim forreinstatement4. Claims for actual, moral, exemplary, and otherforms of damages arising from employeremployee relationships5. Claims arising from any violation on Article 2786. Claimsarisingfromemployer-employeerelationship including those of persons indomestic or household service, involving anamount exceeding P5,000 regardless whetheraccompanied with a claim for reinstatement,EXCEP claims for Employees Compensation,Social Security, Medicare, and maternity benefits7. Money claims arising out of employer-employeerelationship or by virtue of any law or contract,involvingFilipinoworkersforoverseasdeployment, including claims for actual, moral,exemplary, and other forms of damages8. Wagedistortiondisputesinunorganizedestablishments not voluntarily settled by theparties in pursuant to Art. 1249. Enforcement of compromise agreements whenthere is non-compliance by any of the parties,pursuant to Art. 23310. Other cases as may be provided by law Although the first 6 cases fall under the originaland exclusive jurisdiction of labor arbiters, thesecases can by agreement of the parties, bepresented to and decided with finality by avoluntary arbitrator or panel of voluntaryarbitrators The law prefers or gives primacy to4

Labor RelationsAteneo de Davao UniversityBased on the Book of Azucena and the lectures of Fr. Nazareno

voluntary arbitration instead of compulsory

arbitration This is the reason the law forbids a laborarbiter from entertaining a dispute properlybelonging to the jurisdiction of a voluntaryarbitrator The cases a labor arbiter (LA) can hear and decideare employment-related Employment connection is the one unifyingelement running through all the cases anddisputes enumerated in Article 224Rule as to Jurisdiction of Cases:1. Labor Arbiter if the principal relief sought willbe resolved by applying the Labor Code or otherlabor relations statute or a collective bargainingagreement (CBA)2. Regular Courts if the applicable law is thegeneral civil law, i.e. RTCOther Cases under the jurisdiction of LaborArbiters1. Unfair Labor Practices (ULP)2. Gross violation of CBA3. Termination disputesa. But the original and exclusive jurisdictionover grievances arising from interpretationor enforcement of company personnelpolicies belong to voluntary arbitratorsi. Example: If the employee is CBAcovered and terminated for allegedviolation of personnel policy, thedispute should be heard by aVOLUNTARY ARBITRATORii. If the CBA or personnel policy is notinvolved, the case should be broughtto a LABOR ARBITER1. But even if not CBA-covered oreven if no personnel policy isinvolved, the parties may, incategorical and unequivocallanguage, agree to bring thecasestoaVOLUNTARYARBITRATOR2. This allowed since as a rule,voluntaryratherthancompulsory arbitration is thepreferred mode of settling laborShelumiel Ryan B. Abapo, CPA3-ManresaAdDU College of Law

disputes3. Even a ULP case can, byagreement of the parties, bebrought before a voluntaryarbitratorCorporate Disputes If the controversy concerns the election orappointment of directors, trustees, officers, ormanagers of corporations, partnerships orassociations, jurisdiction is vested in theSecurities and Exchange Commission (SEC) (1986SC Ruling) This is true even though the complaint isclaiming for backwages, employmentbenefits, and damages The SEC jurisdiction over corporate disputes hasbeen transferred to the regular courts by theSecurities Regulations Code (RA 8799) signed intolaw on July 19, 2000Award of Damages The legislative intent allow recovery of moral andother forms of damages in all cases arising fromemployer-employee relations The Labor Arbiter may award to the dismissedemployee not only the reliefs provided by thelabor laws, but also the moral and other forms ofdamages governed by the Civil Code Moral Damages would be recoverable not onlywhere the dismissal was without authorized causeor due process but also Was attended by bad faith or fraud; Constituted an act oppressive to labor; or Was done in a manner contrary to morals,good customs, or public policy Also under the jurisdiction of the LA is anemployers claim for actual damagesagainst an employee Since it arises from employer-employeerelationship; and necessarily connected with the disputeover the employees dismissal, should beentered as a counterclaim in the illegaldismissal case The employers claim cannot be filed with aregular court5

Labor RelationsAteneo de Davao UniversityBased on the Book of Azucena and the lectures of Fr. Nazareno

Issuance of Injunction Questions as to the legality of strikes or lockoutsor any form of work stoppage, including theirincidents fall within the labor arbiters jurisdiction But the authority of the LA to issue injunctions asancillary remedy has been deleted by the NLRCRules of ProcedureOverseas Worker RA 8042 has transferred from POEA to the LaborArbiters the jurisdiction over claims arising fromemployer-employeerelationshipinvolvingFilipinos working overseas. Claims may include termination disputeinvolving OFW who worked and wasdismissed by the employer abroadVenue All cases which the Las have authority to hear anddecide may be filed in the Regional ArbitrationBranch (RAB) having jurisdiction over theworkplace of the complainant/petitioner For overseas Filipino workers, the case shall befiled before the RAB where the complainantresides or where the principal office of therespondents/employer is situated, at the option ofthe complainantPowers of the NLRC (Article 225)1. To promulgate rules and regulations governing thehearing and disposition of cases before it (NLRC)and its regional branches, as well as thosepertaining to its internal functions and rules andregulations as may be necessary to carry out thepurpose of the Labor Code2. To administer oaths, summon the parties to acontroversy, issue subpoenas requiring theattendance and testimony of witnesses or theproduction of such books, papers, contracts,records, statement of accounts, agreements, andothers as may be material to a just determinationof the matter under investigation, and to testify inany investigation or hearing conducted inpursuance of the Labor Code3. To conduct investigation for the determination ofa question, matter, or controversy within itsjurisdiction, proceed to hear and determine theShelumiel Ryan B. Abapo, CPA3-ManresaAdDU College of Law

disputes in the absence of any party thereto who

has been summoned or served with notice toappear, conduct its proceedings or any partthereof in public or in private, adjourn its hearingsto any time and place, refer technical matters oraccounts to an expert and to accept his report asevidence after hearing of the parties upon duenotice, direct parties to be joined in or excludedfrom the proceedings, correct, amend, or waiveany error, defect, or irregularity whether insubstance or in form, give all such direction as itmay deem necessary or expedient in thedetermination of the dispute before it, anddismiss any matter or refrain from further hearingor from determining the dispute or part thereof,where it is trivial or where further proceedings bythe NLRC are not necessary or desirable; and4. To hold any person in contempt directly orindirectly and impose appropriate penaltiesthereof in accordance with law1. A person guilty of misbehavior in thepresence of or so near the Chairman or anymember of the NLRC or any Labor Arbiter asto obstruct or interrupt the proceedings;2. Including disrespect toward the saidofficials,3. Offensive personalities toward others; or4. Refusal to be sworn or to answer as awitness or to subscribe an affidavit ordeposition when lawfully required to do so May be summarily adjudged in directcontempt and punished by a fine notexceeding P100 or imprisonment notexceeding 1 day, or both if it be a LaborArbiter The direct contempt judgment may beappealed to the Commission and theexecution shall be suspended pending theresolution of the appeal upon filing of suchperson a bond on a condition that he willabide by and perform the judgment of theNLRC should the appeal be decided againsthim Judgment of the NLRC on direct contempt isimmediately executor and unappealable5. To enjoin or restrain any actual or threatenedcommission of any or all prohibited or unlawfulacts or to require the performance of a particular6

Labor RelationsAteneo de Davao UniversityBased on the Book of Azucena and the lectures of Fr. Nazareno

act in any labor dispute which, if not restrained or

performed forthwith, may cause in favor of suchparty Provided, That no temporary or permanentinjunction in any case involving or growing out ofa labor dispute as defined in this Code shall beissued except after hearing the testimony ofwitnesses,withopportunityforcrossexamination, in support of the allegations of acomplaint made under oath, and testimony inopposition thereto, if offered, and only after afinding of fact by the Commission, to the effect:1. That prohibited or unlawful acts have beenthreatened and will be committed and willbe continued unless restrained, but noinjunction or temporary restraining ordershall be issued on account of any threat,prohibited or unlawful act, except againstthe person or persons, association ororganizationmakingthethreatorcommitting the prohibited or unlawful act oractually authorizing or ratifying the sameafter actual knowledge thereof;2. That substantial and irreparable injury tocomplainants property will follow;3. That as to each item of relief to be granted,greater injury will be inflicted uponcomplainant by the denial of relief than willbe inflicted upon defendants by thegranting of relief;4. That complainant has no adequate remedyat law; and5. That the public officers charged with theduty to protect complainants property areunable or unwilling to furnish adequateprotection.Note: The reception of evidence for the application of awrit of injunction may be delegated by the Commissionto any of its Labor Arbiters who shall conduct suchhearings in such places as he may determine to beaccessible to the parties and their witnesses and shallsubmit thereafter his recommendation to the NLRC.Ocular Inspection (Article 226) The Commission (NLRC), any Commissioner,LaborArbiter,ortheirdulyauthorizedrepresentative, may at anytime during workinghours, conduct an ocular inspection on anyShelumiel Ryan B. Abapo, CPA3-ManresaAdDU College of Law

establishment or premises, and ask any

employee, laborer, or any person as the case maybe for any information or data concerning anymatter relative to the object of investigationPower of the NLRC (Summary)1. To make rules and regulations pertaining to itsfunctions;2. To administer oaths and issue subpoenas andsummons;3. To investigate, hear, and decide disputes withinits jurisdiction;4. To hold persons in contempt;5. To issue restraining orders and injunctions;6. To conduct ocular inspection; and7. To decide appealed casesRules of Procedure The hearing and dispositions of cases by the NLRCDivisions and Labor Arbiters are governed byRules of Procedure that the NLRC itself devisesand promulgates The most recent is the 2011 NLRC Rules ofProcedure promulgated on May 31, 2011Suppletory Rules In absence of specific provisions in the NLRC Rulesor in laws like the Labor Code and itsimplementing rules, the provisions of the Rules ofCourt shall be applied in suppletory characterInjunctive PowerWrit of Injunction a person to do or not to do aparticular act Article 225(e) gives exclusive and originaljurisdiction to the NLRC to hear and resolvepetitions for injunction But injunctions or restraining orders are frownedupon as a matter of labor relations policy. Thus,Article 225(e) prescribes strict procedure andrequisites that must be satisfied before aninjunctive writ may issue Where the NLRC did not follow and observe theprocedure in issuing the injunction, the writ isillegal and void, even though the court hadjurisdiction to issue it The issuance of temporary restraining order (TRO)7

Labor RelationsAteneo de Davao UniversityBased on the Book of Azucena and the lectures of Fr. Nazareno

ex parte is not per se prohibited, but its issuance

should be characterized by care and cautionLabor OrganizationsArt. 239. Requirements of registration. Anyapplicant labor organization, association or group ofunions or workers shall acquire legal personality andshall be entitled to the rights and privileges granted bylaw to legitimate labor organizations upon issuance ofthe certificate of registration based on the followingrequirements.a. Fifty pesos (P50.00) registration fee;b. The names of its officers, their addresses, theprincipal address of the labor organization, the minutesof the organizational meetings and the list of theworkers who participated in such meetings;c. The names of all its members comprising at leasttwenty percent (20%) of all the employees in thebargaining unit where it seeks to operate; (As amendedby Executive Order No. 111, December 24, 1986)d. If the applicant union has been in existence for oneor more years, copies of its annual financial reports;ande. Four (4) copies of the constitution and by-laws of theapplicant union, minutes of its adoption or ratification,and the list of the members who participated in it. (Asamended by Batas Pambansa Bilang 130, August 21,1981)Note: The 20% initial membership is required only if theapplicant is an independent union, not a chaptercreated by a federation.ART. 240. Chartering and Creation of a LocalChapter. A duly registered federation or nationalunion may directly create a local chapter by issuing acharter certificate indicating the establishment of thelocal chapter. The chapter shall acquire legalpersonality only for purposes of filing a petition forcertification election from the date it was issued acharter certificate.The chapter shall be entitled to all other rights andprivileges of a legitimate labor organization only uponthe submission of the following documents in additionto its charter certificate:Shelumiel Ryan B. Abapo, CPA3-ManresaAdDU College of Law

(a) The names of the chapters officers, their addresses,

and the principal office of the chapter; and(b) The chapters constitution and by-laws: Provided,That where the chapters constitution and by-laws arethe same as that of the federation or the nationalunion, this fact shall be indicated accordingly.The additional supporting requirements shall becertified under oath by the secretary or treasurer of thechapter and attested by its president.The workers right to self-organization is guaranteedunder the Constitution and the Labor Code.

Every employee, even temporary ones, except as

provided in Art. 256, is eligible for unionmembership beginning on the employees firstday of work.

Labor Organization means any union or association

of employees in the private sector which exists in wholeor in part for the purpose of collective bargaining or fordealing with empoyers concerning terms and conditionsof employment

The existence of employer-employee relationship

is essential for the exercise of the right of selforganization for purposes of collective bargaining.Absence of such relationship affects the legalityof the union itself

Legitimate Labor Organization any labor

organization in the private sector registered or reportedwith the DOLE in accordance with that provided in theLabor Code, and includes any branch or local thereofWorkers Association an association of workersorganized for the mutual aid and protection of itsmembers or for any legitimate purpose other thancollective bargainingLegitimate Workers Association any workersassociation which is duly registered with the DOLEChartered Local a labor organization that acquiredlegal personality through the issuance of a charter8

Labor RelationsAteneo de Davao UniversityBased on the Book of Azucena and the lectures of Fr. Nazareno

certificate by a duly registered federation or national

union, and reported to the Regional Office inaccordance with Rule III, Section 2-E of the Rules

with legal personality to deal with the

employer in representation of its members

Non-registration does not make a labor

organization illegitimate or illegal sincefreedom of association is constitutionallyguaranteed

But an unregistered labor organization does

not possess the rights mentioned in Article250

Independent Union refers to the creation or

formation of new union arising from the unification oftwo or more unionsAffiliate refers to an independent union affiliated witha federation or national union or a chartered local whichwas subsequently granted independent registration butdid not disaffiliate from its federation, reported to theRegional Office, and the Bureau in accordance with RuleIII, Sections 6 and 7 of the RulesMerger the process where a local organizationabsorbs anotherUnion any labor organization in the private sectororganized for collective bargaining and for otherlegitimate purposesIndependent union a labor organization operatingat the enterprise level that acquired legal personalitythrough independent registrationNational Union or Federation a group of legitimatelabor unions in a private establishment organized forcollective bargaining or for dealing with employersconcerning the terms and conditions of employment fortheir member union or for participating in theformulation of policies and standards, and programs,registered with the Bureau of Labor RelationsConsolidation the creation or formation of a newunion arising from the unification of 2 or more unions

Not every labor organization is a union

Workers association is NOT a union

Not every union is a legitimate labor organization

(LLO)

It is the fact of being registered with the

DOLE that makes a labor organizationlegitimate in the sense that it is clothed

Shelumiel Ryan B. Abapo, CPA

3-ManresaAdDU College of Law

Art. 250. Rights of legitimate labor organizations.

A legitimate labor organization shall have the right:a. To act as the representative of its members for thepurpose of collective bargaining;b. To be certified as the exclusive representative of allthe employees in an appropriate bargaining unit forpurposes of collective bargaining;c. To be furnished by the employer, upon writtenrequest, with its annual audited financial statements,including the balance sheet and the profit and lossstatement, within thirty (30) calendar days from thedate of receipt of the request, after the union has beenduly recognized by the employer or certified as the soleand exclusive bargaining representative of theemployees in the bargaining unit, or within sixty (60)calendar days before the expiration of the existingcollective bargaining agreement, or during thecollective bargaining negotiation;d. To own property, real or personal, for the use andbenefit of the labor organization and its members;e. To sue and be sued in its registered name; andf. To undertake all other activities designed to benefittheorganizationanditsmembers,includingcooperative, housing, welfare and other projects notcontrary to law.Notwithstanding any provision of a general or speciallaw to the contrary, the income and the properties oflegitimate labor organizations, including grants,endowments, gifts, donations and contributions theymay receive from fraternal and similar organizations,local or foreign, which are actually, directly andexclusively used for their lawful purposes, shall be freefrom taxes, duties and other assessments. Theexemptions provided herein may be withdrawn only by9

Labor RelationsAteneo de Davao UniversityBased on the Book of Azucena and the lectures of Fr. Nazareno

a special law expressly repealing this provision. (As

amended by Section 17, Republic Act No. 6715, March21, 1989)Creation and Registration Methods Article 239 specifies 5 Requirements for issuanceof the certificate of registration of an applicantlabor organization, association, or group of unions The Implementing Rules, as modified by D.O. No.40-03,segregatetherequirementsforindependent union, local/chapter, federation ornational union, and workers association A union at the enterprise level may be createdeither by Independent registration Is obtained by the union organizers inan enterprise through their ownaction instead of through issuance ofa charter by a federation or nationalunion The union created and registered hasa legal personality of its own and iscalled independent union Chartering Takes place when a duly registeredfederation or national union issues acharter to a union in an enterpriseand registered the charter with theRegional Office or the Bureau of LaborRelations The union recipient of the charter iscalled a chapter, local or charteredlocal. It has no legal personality of its ownas long as it has not availed itself ofindependent registration The charter certificate issued by afederation or national union, togetherwithsupportingdocumentsevidencing the establishment of suchlocal/chapter, is filed with the DOLEregional office Applications for registration of independentunions,charterlocalsandworkersassociation are filed with the Labor RelationsDivision of the DOLE Regional Office where theapplicant union principally operatesShelumiel Ryan B. Abapo, CPA3-ManresaAdDU College of Law

Denial of registration by the DOLE Regional

Director is appealable to the BLR Directorand from there to the Court of Appeals Applications for federations and nationalunions, though received at the regional offices,are filed with and processed by the national officeof the Bureau of Labor Relations itself becausethey operate in more than 1 region Denial of application filed by the BLR isappealable to the DOLE Secretary and fromthere to the CA if certiorari is justifiable

Requirements for Registration

A. Independent Labor Organization (RNMNAC)a. Registration Feeb. Name of the applicant union, its principal address,names and addresses of its officers, approximatenumber of employees in the bargaining unitwhere it seeks to operate, with a statement that itis not reported as a chartered local of anyfederation or national unionc. Minutes of the organizational meeting; list ofworkers who participated in the meetingsd. Names of all its members comprising at least 20%of all the employees in the bargaining unite. Annual financial report if the applicant has beenin existence for 1 or more years, unless it has notcollected any amount from the member, in whichcase a statement to this effect shall be includedf. Constitution and by-laws (CBL) minutes of itsadoption and ratification, and the list of themembers who participated in it; (list of ratifyingmembers may be dispensed with where the CBLwas ratified or adopted during the organizationmeeting --- factual circumstance of the ratificationshall be recorded in the meeting All required documents shall be certified underoath by the Secretary or Treasurer and attestedby the President 1 original copy and 2 duplicates copies of alldocuments accompanying the application ornotice shall be submitted to the Regional Office orthe BureauB. Federation/National UnionIn addition to a, b, c, e, and f of the requirement forIndependent union:a. Resolution of affiliation of at least 10 LLOswhether independent or chartered locals (all duly10

Labor RelationsAteneo de Davao UniversityBased on the Book of Azucena and the lectures of Fr. Nazareno

recognized collective bargaining agents)

b. Names and addresses of the companies wherethe affiliates operate plus list all members in eachcompany involved Labor organizations operating within an identifiedindustry may also apply for registration as afederation or national union within the specifiedindustry by submitting to the Bureau the sameset of documentsC. Workers Association (RNMFC)a. Registration Feeb. Name of the applicant association, its principaladdress, the name of its officers and theirrespective addressesc. Minutes of the organizational meetings, andnames of individual members who attended suchmeetingsd. Financial reports of the applicant association if ithas been in existence for one or more years,unless it has not collected any amount from themembers, in which case a statement to this effectshall be included in the applicatione. Constitution and By-laws (CBL) with names ofratifying members, the minutes of adoption orratification of the CBL, and the date whenratification was made, unless ratification wasdone in the meeting, in which case such fact shallbe reflected in the minutes Application for registration of a workersassociation operating in more than 1 region shallbe accompanied, in addition to the requirementsin the preceding subsection by a resolution ofmembership of each memberD. Chartered Locala. A charter certificate issued by the federation ornational union indicating the creation orestablishment of the local/chapter;b. The names of the local/chapters officers, theiraddresses, and the principal office of thelocal/chapter; andc. The local/chapters constitution and by-laws(CBL), provided that where the local/chaptersCBL is the same as that of the federation ornational union, this fact shall be indicatedaccordingly Must Submit 2 copies Certified under oath by the Secretary or theTreasurer of the local/chapter and attested by itsShelumiel Ryan B. Abapo, CPA3-ManresaAdDU College of Law

PresidentRequirementsincaseofMerger/Consolidation/Affiliation1. AffiliationA. Affiliationa. Where to Filei. Report of affiliation shall be filed withthe Regional Office which issued itscertificate od registrationb. Requirementsi. Resolution of the labor unions boardof directors approving the affiliationii. Minutes of the general membershipmeeting approving the affiliationiii. Total number of members and namesof members who approved theaffiliationiv. Certificate of affiliation issued by thefederationinfavoroftheindependently registered labor unionv. Written notice to the employerconcerned if the affiliation union isthe incumbent bargaining agentB. Mergera. Where to Filei. Notice of merger of the independentlabor unions, chartered locals, andworkers association shall be filedwith the Regional Office that issuedthe certificate of registrationii. Notice of merger of federation shallbe filed and recorded with the Bureaub. Requirementsi. Minutes of merger convention orgeneral membership meetings of allthe merging labor organizations withthe list of their respective memberswho approved the sameii. Amended constitution and by-lawsand minutes of its ratification, unlesstranspired in the convention, whichfact shall be indicatedC. Consolidationa. Where to Filei. Notice of consolidation of theindependent labor unions, charteredlocals, and workers association shall11

Labor RelationsAteneo de Davao UniversityBased on the Book of Azucena and the lectures of Fr. Nazareno

be filed with the Regional Office that

issued the certificate of registration ofconsolidation of federation shall befiledii. Notice recorded with the Bureaub. Requirementsi. Minutes of consolidation conventionofallconsolidatinglabororganizations, with the list of theirrespective members who approvedthe sameii. Amended constitution and by-laws,minutes of its ratification transpired inthe consolidation convention or in thesame general membership meetings,whichfactshallbeindicatedaccordingly